Flossbach von Storch SICAV

Transcription

1 Flossbach von Storch SICAV Flossbach von Storch SICAV R.C.S. Luxembourg B Investment fund under Luxembourg law An investment fund pursuant to Part II of the Law of 17 December 2010 concerning undertakings for collective investment in the legal form of a Société d Investissement à Capital Variable (SICAV), as currently amended MANAGEMENT COMPANY: Flossbach von Storch Invest S.A. R.C.S Luxembourg B

2 1 CONTENTS REPORT ON FLOSSBACH VON STORCH SICAV S BUSINESS OPERATIONS 2 FLOSSBACH VON STORCH SICAV - MULTIPLE OPPORTUNITIES SUB-FUND 4 Geographical breakdown by country 5 Breakdown by economic sector 6 Composition of net sub-fund assets 8 Statement of income and expenses 11 Statement of assets as at 30 September Additions and disposals from 01 October 2017 to 30 September NOTES TO THE ANNUAL REPORT AS AT 30 SEPTEMBER DISCLOSURES IN ACCORDANCE WITH THE DELEGATED AIFM REGULATION (UNAUDITED) 24 AUDIT OPINION 28 CALCULATION OF DISTRIBUTION AS PER SECTION 12 INVESTMENT FUND ACCOUNTING AND VALUATION REGULATION (KARBV) (UNAUDITED) 31 MANAGEMENT, DISTRIBUTION AND ADVISORY SERVICES 33 The sales prospectus and the Articles of Association it includes, the Key Investor Information Document and the annual and semi-annual reports on the fund are available free of charge by post, fax or from the registered offices of the investment company, the depositary, the paying agents and sales agents for each country in which it is sold and from the representative in Switzerland. For further information, please feel free to contact the management company during normal business hours. Subscriptions for fund shares are only valid if based on the latest edition of the sales prospectus, including its annexes in conjunction with the most recently available annual report or semi-annual report if one has been published thereafter.

3 2 Report on business operations Flossbach von Storch SICAV Multiple Opportunities Share class R of the Flossbach von Storch SICAV Multiple Opportunities sub-fund ended the past financial year from 1 October 2017 to 30 September 2018 with a value increase of 3.2%; this takes into account a distribution of ordinary income in December in the amount of EUR per fund share. In comparison, the most important equity indices performed as follows in consideration of net dividends: The global leading index, MSCI World Index, increased by 13.2%, in euros. European equities were able to gain 1.5%, as measured by the Stoxx Europe 600. In addition, the bond index REXP fell by 0.1% in the reporting period. The price of gold fell by 6.9% (in US dollars) or 5.2% (in euros). In this environment, we do not expect the European Central Bank (ECB) to make any real turnaround to the old levels, which we knew before the financial crisis. Our currency area remains fragile, reliant on support from the central bank. In our opinion, the announcement on behalf of the ECB is unlikely to change much, meaning that the portfolio of bonds will not be increased further as of The equity asset class continued to be in demand during the reporting period. Meanwhile, the US S&P 500 equity index reached a new all-time high of 2940 points in September After the stock markets had risen for a long time without any noticeable interruption, volatility dropped back at the beginning of Within a few days, the S&P 500 lost more than 10%, which was the biggest setback in two years. The interim strength of the euro in the financial year was probably one of the biggest surprises in the capital markets. At the start of 2018, the price of the euro peaked above the $1.25 mark, temporarily causing significant currency losses for euro investors. However, the greenback made a strong comeback in the course of the year. At the end of the reporting period, one euro was only worth about $1.16. The fragility of the Eurozone was once again evident during the reporting period. The different economies only scarcely run in harmony. Excessive public debt can only be financed with low interest rates. Political uncertainties hardly provide the environment for necessary reforms. This could be seen in the parliamentary elections in Italy in the spring of The country was governed by a coalition of left and right populists that sought to significantly expand indebtedness, although Italy is already indebted to the amount of 131% of its gross domestic product. The yield on ten-year-old Italian government bonds rose over the reporting period by a good percentage point to 3.1% at the end of September One of the uncertainties in the markets was the US trade conflict with various countries. While the European Union conducted further negotiations, and Mexico and Canada continued their trade arrangement with the USA under a new name, there was no relief in sight in the trade dispute between the USA and China during the reporting period. Even if any possible trade war might likely affect China harder than the USA, trade wars have no winners in an era of global production chains between companies. Despite the numerous crises, the price of gold was not of any benefit in the reporting period. The development once again illustrates that gold is not an instant winner of political crises. In our opinion, the precious metal is an insurance against the known and unknown risks on the financial markets - which can even result in a loss of confidence in our monetary system. Bonds earned little in the reporting period at least when investors focussed on the broader market. Neither

4 3 Report on business operations government bonds nor corporate bonds ended the financial year with gains. The sub-fund s equity holdings focus on globally oriented companies with a strong market position, high pricing power, stable margins and a solid balance sheet structure. Ongoing income is also received in the form of dividend payments that make the shares of financially sound companies even more attractive. These quality criteria in stock selection ensure that companies from the consumer and pharmaceutical sectors are relatively heavily weighted in the sub-fund. Luxembourg, October 2018 The fund management on behalf of the board of directors of Flossbach von Storch SICAV The data and figures contained in this report are based on past performance and are no indication of future performance. As of 30 September 2018, the sub-fund volume was around EUR 12.8 billion. The five largest equity positions were Nestlé, Berkshire Hathaway, Philip Morris, Daimler and Reckitt Benckiser, which together accounted for approximately 23% of the sub-fund s assets. The equity allocation was approx. 67.6% at the end of the financial year. Approximately 7.2% of the sub-fund s assets was invested in bonds. The precious metal ratio hardly changed in comparison with the previous year s reporting date and stood at around 9.8% at the financial year end. Precious metals are held exclusively in the form of physical gold and serve diversification and portfolio hedging purposes. The exchange rate risks of existing equity positions in foreign currencies, predominantly the US dollar, the Swiss franc and the pound sterling, were not hedged at the end of the financial year.

5 4 Flossbach von Storch SICAV - Multiple Opportunities Annual report 01 October September 2018 The company is entitled to create share classes with different rights in relation to the shares. Details of the current share classes are as follows: Share class F Share class R Share class I Securities ID No. (WKN): A0M43Z A0M430 A1W0MN ISIN: LU LU LU Subscription fee: up to 5.00% up to 5.00% up to 5.00% Redemption fee: none none none Management fee: 1.03% p.a. 1.53% p.a. 0.78% p.a. Minimum initial investment: EUR 5,000,000 none EUR 1,000,000 Minimum subsequent investment: EUR 1,000,000 none EUR 1,000,000 Income utilisation: distributing distributing distributing Currency: EUR EUR EUR The notes constitute an integral part of this annual report.

6 5 Flossbach von Storch SICAV - Multiple Opportunities Geographical breakdown by country 1) United States of America 28.47% Germany 14.96% Switzerland 9.91% Netherlands 5.85% United Kingdom 5.64% Denmark 2.87% Japan 2.18% Canada 1.97% India 1.20% Israel 1.10% Norway 0.84% Securities holdings 74.99% Precious metals, gold 9.79% Futures contracts 0.00% Bank balances 15.21% Balance of other receivables and payables 0.01% % 1) Due to rounding differences in individual amounts, totals may differ from the actual value. The notes constitute an integral part of this annual report.

7 6 Flossbach von Storch SICAV - Multiple Opportunities Breakdown by economic sector 1) Foodstuffs, beverages and tobacco 12.77% Automobiles and components 11.59% Software and services 10.76% Pharmaceuticals, biotechnology and life sciences 8.24% Diversified financial services 6.46% Household items and body care products 5.73% Health care: equipment and services 4.05% Raw materials and supplies 3.57% Telecommunications services 2.93% Government bonds 2.34% Wholesale and retail 1.97% Capital goods 1.58% Banks 1.20% Real estate 0.84% Media 0.58% Semi-conductors and semi-conductor production equipment 0.38% Securities holdings 74.99% Precious metals, gold 9.79% Futures contracts 0.00% Bank balances 15.21% Balance of other receivables and payables 0.01% % 1) Due to rounding differences in individual amounts, totals may differ from the actual value. The notes constitute an integral part of this annual report.

8 7 Flossbach von Storch SICAV - Multiple Opportunities Performance over the last three financial years Share class F Net Net Share class assets Outstanding inflow of funds Share value Date EUR millions Equities 000 EUR EUR 30/09/2016 1, ,901, , /09/2017 1, ,509, , /09/2018 1, ,846, , Share class R Net Net Share class assets Outstanding inflow of funds Share value Date EUR millions Equities 000 EUR EUR 30/09/2016 8, ,801,297 1,584, /09/2017 9, ,989,110 1,425, /09/ , ,826, , Share class I Net Net Share class assets Outstanding inflow of funds Share value Date EUR millions Equities 000 EUR EUR 30/09/ ,792, , /09/ ,548, , /09/ ,126,605 80, Past performance is no guarantee of future results. The notes constitute an integral part of this annual report.

9 8 Flossbach von Storch SICAV - Multiple Opportunities Composition of net sub-fund assets as at 30 September 2018 EUR EUR 30 September September 2018 Securities holdings (cost of acquisition of securities as at 30 September 2017: EUR 8,846,956,037.73) (cost of acquisition of securities as at 30 September 2018: EUR 9,086,036,850.51) 9,443,482, ,618,003, Precious metals, gold 1,260,798, ,256,307, Bank balances 1) 1,526,678, ,951,760, Interest receivables 14,734, ,874, Dividend receivables 9,359, ,972, Receivables from the sale of shares 12,311, ,508, Receivables from securities transactions 84, ,267,449, ,863,428, Payables from the redemption of shares -11,479, ,894, Unrealised losses on futures contracts -8,076, , Unrealised losses from forward exchange transactions -13,398, Payables from securities transactions -25,311, ,268, Management fee/fund management fee 2) -13,604, ,907, Depositary fee 2) -291, , Performance fee -20, ,542, Central administration agent fee 2) -127, , Taxe d abonnement 3) -1,521, ,583, Publication and auditing costs -15, , ,846, ,933, Net sub-fund assets 12,193,603, ,830,494, Shares in circulation 54,047, ,799, ) The bank balances held are not protected by a deposit guarantee scheme. 2) Provisions for the period from 1 September 2018 to 30 September ) Provisions for the third quarter of The notes constitute an integral part of this annual report.

10 9 Flossbach von Storch SICAV - Multiple Opportunities Allocation to the share classes 30 September September 2018 Share class F Proportion of net sub-fund assets EUR 1,443,715, EUR 1,306,118, Shares in circulation , ,215 Share value EUR EUR Share class R Proportion of net sub-fund assets EUR 9,859,626, EUR 10,527,617, Shares in circulation , ,322 Share value EUR EUR Share class I Proportion of net sub-fund assets EUR 890,261, EUR 996,757, Shares in circulation 6,548, ,126, Share value EUR EUR Change in net sub-fund assets in the reporting period from 01 October 2017 to 30 September 2018 EUR EUR EUR EUR Total Share class F Share class R Share class I Net sub-fund assets at the start of the reporting period 12,193,603, ,443,715, ,859,626, ,261, Ordinary net expenditure -12,844, ,168, ,159, ,146, Income and expense equalisation 2,197, , ,697, , Cash inflows from share sales 1,729,036, ,675, ,444,559, ,801, Cash outflows from share redemptions -1,386,467, ,367, ,005,570, ,528, Realised profits 709,440, ,892, ,049, ,498, Realised losses -160,388, ,610, ,124, ,653, Net change in unrealised gains 203,990, ,282, ,391, ,316, Net change in unrealised losses -335,225, ,648, ,228, ,348, Distribution -112,847, ,205, ,623, ,018, Net sub-fund assets at the end of the reporting period 12,830,494, ,306,118, ,527,617, ,757, The notes constitute an integral part of this annual report.

11 10 Flossbach von Storch SICAV - Multiple Opportunities Changes in number of shares in circulation for share class F No. of shares No. of shares 30 September September 2018 Shares in circulation at start of reporting period 5,901, ,509, Shares issued 186, , Shares redeemed -578, , Shares in circulation at end of reporting period 5,509, ,846, Changes in number of shares in circulation for share class R No. of shares No. of shares 30 September September 2018 Shares in circulation at start of reporting period 35,801, ,989, Shares issued 9,405, ,064, Shares redeemed -3,217, ,226, Shares in circulation at end of reporting period 41,989, ,826, Changes in number of shares in circulation for share class I No. of shares No. of shares 30 September September 2018 Shares in circulation at start of reporting period 4,792, ,548, Shares issued 3,089, ,682, Shares redeemed -1,333, ,104, Shares in circulation at end of reporting period 6,548, ,126, Performance as a percentage* as at 30 September 2018 Fund ISIN WKN 6 months 1 year 3 year 10 year Flossbach von Storch SICAV - Multiple Opportunities F Since 24/10/2007 Flossbach von Storch SICAV - Multiple Opportunities I Since 30/09/2013 Flossbach von Storch SICAV - Multiple Opportunities R Since 26/10/2007 LU A0M43Z LU A1W0MN LU A0M % 4.00% 24.95% % 4.18% 3.86% 23.77% % 3.19% 21.85% % * Based on the published stock value, the BVI method ultimately corresponds to the Guidelines on the calculation and publication of performance data of collective investment schemes issued by the Swiss Funds & Asset Management Association (SFAMA) on 16 May Past performance is not an indicator of current or future performance. Performance data does not take into account the commissions and costs levied on the issue and redemption of stocks. The notes constitute an integral part of this annual report.

12 11 Flossbach von Storch SICAV - Multiple Opportunities Statement of income and expenses in the reporting period from 01 October 2017 to 30 September 2018 EUR EUR EUR EUR Total Share class F Share class R Share class I Income Dividends 186,167, ,890, ,695, ,581, Interest on loans 30,940, ,344, ,199, ,396, Income from withholding tax reimbursement 724, , , , Bank interest -5,935, , ,835, , Other income 359, , , , Income equalisation 2,486, , ,335, , Total income 214,742, ,820, ,278, ,644, Expenses Interest payable -9, , , Performance fee -32,390, ,815, ,575, Management fee/ Fund management fee -177,105, ,878, ,669, ,557, Depositary fee -3,536, , ,880, , Central administration agent fee -1,534, , ,249, , Taxe d abonnement -6,225, , ,071, , Publication and auditing costs -363, , , , Typesetting, printing and dispatch costs for the annual and semi-annual reports -20, , , , Registrar and transfer agent fee -45, , , , State fees -15, , , , Depositary fees -1,587, , ,292, , Other expenses 1) -67, , , , Expense equalisation -4,684, , ,033, , Total expenses -227,587, ,652, ,437, ,497, Ordinary net expenditure -12,844, ,168, ,159, ,146, Total transaction costs during the financial year 2) 5,789, Ongoing costs in percent 2) Total Expense Ratio excluding performance fee in percent 2) (For the period from 1 October 2017 to 30 September 2018) Total Expense Ratio including performance fee in percent 2) (For the period from 1 October 2017 to 30 September 2018) Performance fee in percent 2) (For the period from 1 October 2017 to 30 September 2018) ) This item mainly consists of membership and license fees. 2) See the Notes to the report. The notes constitute an integral part of this annual report.

13 12 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2018 ISIN Securities Additions in the reporting period Disposals in the reporting period Quantity Price Market value EUR %- share of NSFA 1) Equities, rights and participation certificates Exchange-traded securities Denmark DK Novo-Nordisk AS DKK 2,377,686 1,350,000 9,027, ,649, ,649, Germany DE Bayerische Motoren Werke AG EUR 2,083, ,750 4,800, ,200, DE Bayerische Motoren Werke AG -VZ- EUR , ,153, DE Bechtle AG EUR 0 936,108 1,197, ,748, DE000A1DAHH0 Brenntag AG EUR 2,770,342 1,681,001 1,538, ,658, DE Daimler AG EUR 913, ,225, ,417, DE000A0Z2ZZ5 Freenet AG EUR 1,000, ,397, ,985, DE Infineon Technologies AG EUR 0 0 2,454, ,749, DE SAP SE EUR 841, ,156 1,487, ,400, DE TAG Immobilien AG EUR 0 2,001,000 5,230, ,433, DE United Internet AG EUR 200,000 1,299,370 3,359, ,689, ,845,437, India INE001A01036 Israel IL Japan Housing Development Finance Corporation Ltd. Check Point Software Technologies Ltd. INR 7,400, ,400,000 1, ,336, ,336, USD 1,397, ,397, ,400, ,400, JP Fanuc Corporation JPY 741, ,400 21, ,120, JP KDDI Corporation JPY 0 3,899,600 6,695,868 3, ,980, ,100, Canada CA Barrick Gold Corporation USD 10,000, ,548, ,072, ,072, Netherlands NL Unilever NV EUR 6,476,753 1,300,000 5,176, ,665, ,665, Switzerland CH Nestlé S.A. CHF 1,301, ,944, ,254, CH Novartis AG CHF 0 0 4,000, ,304, CH Roche Holding AG participation certificates CHF 0 450, , ,044, CH UBS Group AG CHF 7,070, ,070, ,221, ,270,824, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. The notes constitute an integral part of this annual report.

14 13 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2018 (continued) ISIN Securities Additions in the reporting period Disposals in the reporting period Quantity Price Market value EUR %- share of NSFA 1) United States of America US Abbott Laboratories USD 0 3,200,000 3,600, ,138, US00507V1098 Activision Blizzard Inc. USD 510, , ,197, US02079K3059 Alphabet Inc. USD 91,000 88, ,000 1, ,952, US Berkshire Hathaway Inc. USD 250, ,113 3,577, ,044, US09247X1019 BlackRock Inc. -A- USD 160, , ,486, US09857L1089 Booking Holdings Inc. USD 120,003 39,003 81,000 1, ,619, US Danaher Corporation USD 0 582,721 2,987, ,781, US30303M1027 Facebook Inc. USD 1,190, ,000 1,200, ,525, US Johnson & Johnson USD 1,503, ,903, ,346, US Newmont Mining Corporation USD 3,883, ,000, ,412, US67072V1035 NxStage Medical Inc. USD 2,182,400 1,418, , ,377, US Philip Morris Internat. Inc. USD 6,445, ,750, ,836, US The Procter & Gamble Co. USD 1,600, ,000 1,139, ,830, US TJX Co. Inc. USD 200,000 1,600, , ,304, US Worldpay Inc. USD 3,052, ,052, ,775, ,382,629, United Kingdom GB British American Tobacco Plc. GBP 0 0 3,776, ,380, GB Imperial Brands Plc. GBP 0 1,929,025 5,428, ,965, GB00B24CGK77 Reckitt Benckiser Group Plc. GBP 2,747,382 1,153,728 5,199, ,996, ,342, Exchange-traded securities 8,664,457, Equities, rights and participation certificates 8,664,457, Bonds Exchange-traded securities EUR XS % Bertelsmann SE & Co. KGaA Reg.S. Fix-to-Float v.15(2075) XS % Volkswagen International Finance NV Fix-to-Float Perp ,000, ,432, ,300, ,300, ,446, XS % Volkswagen International Finance 130,100, ,100, ,937, NV Fix-To-Float Perp. XS % Volkswagen International Finance NV FRN Perp. XS % Volkswagen International Finance NV Reg.S. Fix-to-Float v.17 Perp ,100, ,264, ,500, ,000, ,974, ,054, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. The notes constitute an integral part of this annual report.

15 14 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2018 (continued) Additions Disposals %- in the in the share reporting reporting Market value of ISIN Securities period period Quantity Price EUR NSFA 1) NOK NO % Norway v.12(2023) 0 330,000,000 1,000,000, ,314, ,314, USD US J % Unites States of 150,000, ,000, ,665, America v.18(2020) US L % Unites States of 75,000, ,000, ,672, America v.18(2023) 191,338, Exchange-traded securities 874,707, Securities admitted to trading or included in organised markets EUR XS % Netflix Inc. Reg.S. v.17(2027) 43,000, ,000, ,440, ,440, Securities admitted to trading or included in organised markets 42,440, Bonds 917,147, Convertible bonds Securities admitted to trading or included in organised markets USD US697435AC % Palo Alto Networks Inc. 40,750, ,750, ,397, CV v.18(2023) 36,397, Securities admitted to trading or included in organised markets 36,397, Convertible bonds 36,397, Securities holdings 9,618,003, Futures contracts Short positions EUR EUX Short Euro-BTP Future December ,000-10, , , Short positions -336, Futures contracts -336, Precious metals, gold 2) EUR Gold (bars) , , , USD Gold (bars) ,098 1,465,901, ,255,482, ,255,482, Precious metals, gold 1,256,307, ) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. 2) A detailed presentation of gold holdings as at 30 September 2018 is available free of charge by post, fax or from the registered offices of the investment company, the Depositary, the paying agents and sales agents for each country in which it is sold and from the representative in Switzerland. The notes constitute an integral part of this annual report.

16 15 Flossbach von Storch SICAV - Multiple Opportunities Statement of assets as at 30 September 2018 (continued) % Bank balances - current account 1) Currency Interest rate in % Maturity Foreign currency holdings Market value EUR share of NSFA 2) DZ PRIVATBANK S.A. CHF daily 3,269, ,870, DZ PRIVATBANK S.A. DKK daily 3,410, , DZ PRIVATBANK S.A. 3) EUR daily 1,801,959, ,801,959, DZ PRIVATBANK S.A. GBP daily 61,640, ,259, DZ PRIVATBANK S.A. INR daily 2,252,490, ,579, DZ PRIVATBANK S.A. JPY daily 272,090, ,058, DZ PRIVATBANK S.A. MXN daily 180, , DZ PRIVATBANK S.A. NOK daily 6,408, , DZ PRIVATBANK S.A. USD daily 25,038, ,444, DZ PRIVATBANK S.A. ZAR daily 2,703, , DZ PRIVATBANK S.A. (Initial Margin) EUR daily 26,283, ,283, Total bank balances current account 1,951,760, Balance of other receivables and payables 4,758, Net sub-fund assets in EUR 12,830,494, % share Futures contracts Quantity Liabilities EUR of NSFA 2) Short positions EUR EUX Short Euro-BTP Future December ,000-1,101,800, ,101,800, Short positions -1,101,800, Futures contracts -1,101,800, ) The bank credit balances/liabilities held are not protected by a deposit guarantee scheme. The interest rates given are valid as at 30 September The stated bank credit balances/liabilities are payable on sight. 2) NSFA = net sub-fund assets. Due to rounding differences in individual amounts, totals may differ from the actual value. 3) Includes variation margin of EUR -63, The notes constitute an integral part of this annual report.

17 16 Flossbach von Storch SICAV - Multiple Opportunities Additions and disposals from 1 October 2017 to 30 September 2018 Purchases and sales of securities, note loans and derivatives during the reporting period, including changes not involving monetary transactions and not disclosed in the statement of assets. Additions Disposals in the in the ISIN Securities reporting period reporting period Equities, rights and participation certificates Exchange-traded securities France FR L'Air Liquide S.A. EUR 130,774 1,438,512 Japan JP Makita Corporation JPY 0 480,800 JP Seven & I Holding Co. Ltd. JPY 0 1,000,000 JP Toyota Motor Corporation JPY 0 2,099,483 Virgin Islands (GB) VGG Michael Kors Holdings Ltd. USD 0 7,371,577 Switzerland CH Sunrise Communications Group AG CHF 0 267,831 South Africa ZAE Naspers Ltd. ZAR 0 357,576 United States of America US Amazon.com Inc. USD 0 66,928 US Electronic Arts Inc. USD 280, ,000 US General Mills Inc. USD 0 2,520,380 US IBM Corporation USD 0 1,248,341 US Kellogg Co. USD 586, ,050 US Lowe's Companies Inc. USD 0 2,029,000 US57636Q1040 Mastercard Inc. USD 0 100,000 US Microsoft Corporation USD 0 562,027 US61166W1018 Monsanto Co. USD 0 2,602,494 US Ross Stores Inc. USD 0 2,900,000 US The Priceline Group Inc. USD 70, ,003 US United Technologies Corporation USD 0 1,163,553 US92210H1059 Vantiv Inc. USD 2,051,000 3,052,604 Bonds Exchange-traded securities EUR XS % Bertelsmann SE & Co. KGaA Reg.S. Fix-to-Float v.15(2075) 0 40,400,000 DE % Federal Republic of Germany v.17 (2027) 200,000, ,000,000 IT % Italien v.13(2028) 100,000, ,000,000 XS % Netflix Inc. Reg.S. v.17(2027) 0 71,400,000 XS % OMV AG Fix-to-Float Reg.S. Perp. 0 18,500,000 XS % Orange S.A. Fix-to-Float Perp. 0 15,000,000 XS % Telefónica Europe BV Reg.S. Fix-to-Float Perp. 0 21,700,000 XS % Volkswagen International Finance NV Reg.S. Fix-to- Float Perp ,600,000 The notes constitute an integral part of this annual report.

18 17 Flossbach von Storch SICAV - Multiple Opportunities Additions and disposals from 1 October 2017 to 30 September 2018 (continued) Purchases and sales of securities, note loans and derivatives during the reporting period, including changes not involving monetary transactions and not disclosed in the statement of assets. Additions Disposals in the in the ISIN Securities reporting period reporting period NOK NO % Norwegen v.08(2019) 0 1,660,000,000 NO % Norwegen v.10(2021) 0 1,000,000,000 Options EUR Put on DAX Index June 2018/13, ,000 27,000 USD Put on S&P 500 Index March 2018/2, ,000 10,000 Put on S&P 500 Index March 2018/2, ,000 2,000 Futures contracts EUR DAX Performance-Index Future March EURO STOXX Banks Future December ,000 0 EURO STOXX Banks Future March ,000 30,000 EUX 10 YR Euro-OAT Future December ,000 0 USD E-Mini S&P 500 Index Future June ,350 11,350 E-Mini S&P 500 Index Future March ,350 11,350 Tesla Inc. Future December Tesla Inc. Future June Exchange rates The values of assets denominated in foreign currencies are given in euro, applying the exchange rates prevailing on 30 September 2018 as stated below. British pound GBP Danish krone DKK Indian rupee INR Japanese yen JPY Mexican peso MXN Norwegian krone NOK Swiss franc CHF South African rand ZAR US dollar USD The notes constitute an integral part of this annual report.

19 18 Notes to the annual report as at 30 September ) Introduction The investment company Flossbach von Storch SICAV is a limited company with variable capital (société d investissement à capital variable) under Luxembourg law with its registered office at 6, Avenue Marie-Thérèse, L-2132 Luxembourg, Grand Duchy of Luxembourg (Tel.: , Fax: , info@fvsinvest.lu). It was founded on 19 October 2007 for an indefinite period in the form of an umbrella fund with multiple sub-funds. Its Articles of Association were published on 29 November 2007 in Mémorial, Recueil des Sociétés et Associations, the official journal of the Grand Duchy of Luxembourg ( Mémorial ). The Mémorial was replaced on 1 June 2016 by the new information platform Recueil électronique des sociétés et associations ( RESA ) of the Commercial and Company Register in Luxembourg. The investment company is registered in the Luxembourg Trade and Companies Register under registration number R.C.S. Luxembourg B Its Articles of Association were last amended on 29 December 2017 and were published in the RESA. The Flossbach von Storch SICAV is an alternative investment fund ( AIF ) established for an indefinite period in the form of an umbrella fund ( investment company ) with one or more sub-funds ( sub-funds ) and governed by the provisions of Part II of the Luxembourg law of 17 December 2010 concerning undertakings for collective investment ( Law of 17 December 2010 ). The management company of the Flossbach von Storch SICAV is Flossbach von Storch Invest S.A. (the management company ), a public limited company (Aktiengesellschaft) under the law of the Grand Duchy of Luxembourg with its registered office located at 6, Avenue Marie-Thérèse, L-2132 Luxembourg. The management company was incorporated for an indefinite period on 13 September Its articles of association were published in the Mémorial on 5 October The most recent amendment to the articles of association came into force on 6 May 2015 and was published in the Mémorial on 3 June The management company is registered in the Commercial Register of Luxembourg District Court under registration number R.C.S. Luxembourg B ) Key accounting and valuation principles These annual financial statements have been prepared under the responsibility of the board of directors of the investment company in conformity with the legal provisions and regulations prevailing in Luxembourg for the preparation and presentation of annual financial statements. 1. The net company assets of the investment company are denominated in euro (EUR) ( reference currency ). 2. The value of a share ( net asset value per share ) is denominated in the currency laid down in the annex to the sales prospectus ( sub-fund currency ) unless a currency other than the sub-fund currency has been specified in the relevant annex to the sales prospectus in relation to any other share classes which may exist ( share class currency ). 3. The net asset value per share is calculated on each valuation day by the investment company or a third party appointed for this purpose under the supervision of the depositary. The board of directors may decide to apply different rules to individual sub-funds, but the net asset value per share must be calculated at least twice per month.

20 19 Notes to the annual report as at 30 September The net asset value per share is calculated and rounded to two decimal places by the management company or its appointee, under the supervision of the depositary, on each banking day in Luxembourg with the exception of 24 and 31 December of each year ( valuation day ). In order to calculate the net asset value per share, the value of the assets of each sub-fund less the liabilities of each sub-fund ( net sub-fund assets ) is determined on each valuation day and divided by the number of shares in circulation on the valuation day. 5. To the extent that information on the situation of the net assets of the company must be provided in the annual or semi-annual reports and/or other financial statistics in accordance with the applicable legislative provisions or in accordance with the conditions of these articles of association, the value of the assets of each sub-fund will be converted to the reference currency. Net sub-fund assets are calculated according to the following principles: a) Securities, money market instruments, derivative financial instruments (derivatives) and other investments officially listed on a stock exchange are valued at the latest available trade price which provides a reliable valuation on the trading day preceding the valuation day. If securities, money market instruments, derivative financial instruments or other assets are officially listed on more than one stock exchange, the price quoted on the exchange with the most liquidity is used. c) OTC derivatives are valued on a daily basis using a method to be determined and validated by the investment company in good faith on the basis of the sale value that is likely to be attainable and using generally accepted and verifiable valuation models. d) Shares in UCI/UCITS are generally valued at the last redemption price fixed before the valuation day or at the latest available price that affords a reliable valuation. If the redemption of investment shares has been suspended or if no redemption price has been set, these shares and all other assets are valued at their appropriate market values as determined in good faith by the management company in line with generally accepted and verifiable valuation models. e) If the relevant prices are not market prices and if no prices have been set in respect of financial instruments other than those mentioned in subsections a) to d), the values of these financial instruments and of any other legally permissible assets are valued at their market prices as determined in good faith by the investment company, in line with generally accepted and verifiable valuation models (e.g. using suitable valuation models and taking current market conditions into account). f) The liquid funds are valued at nominal value plus interest. b) Securities, money market instruments, financial derivative instruments (derivatives) and other investments that are not officially listed on a securities exchange (or whose stock prices are not considered representative, e.g., on the basis of lack of liquidity) that are, however, traded on a regulated market are valued at a price that must not be less than the bid price and not higher than the ask price in their valuation on the previous trading day and that the management company believes in good faith to be the best possible price for which the securities, money market instruments, derivative financial instruments (derivatives) and other investments can be sold. g) Amounts due, for example, deferred interest claims and liabilities, shall in principle be rated at the nominal value. h) The market values of securities, money market instruments, derivatives and other assets denominated in a currency other than the relevant sub-fund currency are converted into the relevant sub-fund currency at the exchange rate prevailing at 5 p.m. CET/CEST (4 p.m. GMT/BST) on the trading day preceding the valuation day, as determined via WM/Reuters fixing. Profits and losses from currency transactions will be added or deducted as applicable.

21 20 Notes to the annual report as at 30 September The various net sub-fund assets will be reduced by the amount of any distributions paid out to shareholders in the relevant sub-fund. The net asset value per share is calculated separately for each sub-fund according to the criteria listed above. If share classes were created within a given sub-fund, the resulting net asset value per sub-fund is calculated separately for each share class within the sub-fund according to the above criteria. a) The composition and allocation of assets always occurs separately for each sub-fund. b) Cash inflows from share issues increase the share of the respective share class as a percentage of the total value of the sub-fund assets. Cash outflows from share redemptions decrease the share of the respective share class as a percentage of the total value of the sub-fund assets. c) If a distribution is carried out, the value of the shares entitled to distributions is reduced by the amount of the distribution. At the same time it reduces this share class as a percentage of total sub-fund assets, whereas the share class not entitled to distributions increases as a percentage of total sub-fund assets. Sub-fund assets are generally valued by the management company. The management company may delegate the valuation of assets and make use of an external valuation agent that meets the statutory regulations. The latter may not delegate its valuation function to a third party. The management company notifies the relevant supervisory authority if an external valuation agent is appointed. Even if it has appointed an external valuation agent, the management company remains responsible for the proper valuation of sub-fund assets and for calculating and publishing the net asset value. Notwithstanding the preceding sentence, the external valuation agent is liable to the management company for any losses incurred by the management company that can be attributed to the external valuation agent s negligence or intentional non-performance of its duties. 7. For purposes of harmonising tax information for German investors within the meaning of Section 5(1) InvStG and information under investment laws, the income accumulated during the holding period and the realised interim gains of the target funds sold in the financial year are recorded as income from investment units in the ordinary result. In the case of interim losses, negative income from investment units may be reported in the ordinary result. 8. In connection with the conclusion of listed derivatives, the fund is obliged to provide collateral to cover risks in the form of bank deposits or securities. The collateral provided in the form of bank deposits is: ESMA Initial margin/variation margin at the reporting date 30 September 2018: Sub-fund name Counterparty Initial margin Variation margin Flossbach von Storch SICAV Multiple Opportunities DZ PRIVATBANK S.A. EUR 26,283, EUR -63, For arithmetical reasons the tables included in this report may contain rounding differences of up to plus or minus one unit (of currency, per cent, etc.).

22 21 Notes to the annual report as at 30 September ) Taxation 4.) Use of income Taxation of the investment company and its sub-funds In the Grand Duchy of Luxembourg, the company s and sub-funds assets are subject to a tax known as the taxe d abonnement, which is currently levied at a rate of 0.05% p.a. and is payable quarterly on the net assets of the company reported at the end of each quarter. If all or part of a subfund s assets are invested in other Luxembourg investment funds that are already subject to the taxe d abonnement, then that part of the sub-fund s assets invested in Luxembourg investment funds is exempt from this tax. The income of the investment company or its sub-funds from investing its assets is not taxed in the Grand Duchy of Luxembourg. However, such income may be subject to taxation at source in countries in which sub-fund assets are invested. In such cases, neither the depositary nor the investment company is obliged to obtain tax certificates. The board of directors of the investment company can distribute the income generated by a sub-fund or a share class to shareholders or retain this income within the sub-fund or share class. This is stipulated for each sub-fund in the respective annex to the sales prospectus. The annex to the current sales prospectus states that the income from the sub-fund is to be distributed. 5.) Information on fees and expenses Details of management and depositary fees are given in the current sales prospectus. 6.) Total expense ratio (TER) The following method was used to calculate the total expense ratio (TER): Taxation of earnings from shares in the investment company held by the shareholder Shareholders who are not resident in and/or do not maintain a business establishment in the Grand Duchy of Luxembourg are not required to pay any further income, inheritance or wealth tax in the Grand Duchy of Luxembourg in respect of their shares or of income deriving from their shares. These parties are subject to their own countries tax regulations. Natural persons who are resident in the Grand Duchy of Luxembourg and are not resident in another state for tax purposes are required to pay a withholding tax of 20% on interest income accrued in Luxembourg in accordance with the Luxembourg law implementing the Directive. Under certain circumstances, investment fund interest income may also be subject to the withholding tax. Total costs in fund currency TER = x 100 average fund volume (Basis: NSFA for valuation date*) *NSFA = net sub-fund assets The TER indicates the degree to which costs were charged to the fund assets. In addition to the management and depositary fee and the taxe d abonnement, all other costs are taken into account with the exception of the transaction costs charged to the fund. It gives the total sum of these costs as a percentage of the average fund volume over the financial year. (Any performance-related fees are shown separately but in clear relation to the TER.) If the fund invests in target funds, a synthetic TER is not calculated. Prospective shareholders should enquire about the laws and regulations that apply to the purchase, possession and redemption of shares and, where necessary, seek advice. 7.) Ongoing charges Ongoing charges is a figure determined in accordance with Article 10(2) Letter b of Commission Regulation (EU) No 583/2010 of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and of the Council.

23 22 Notes to the annual report as at 30 September 2018 The ongoing charges indicate the degree to which costs were charged to the fund assets in the past financial year. In addition to the management and depositary fee and the taxe d abonnement, all other costs are taken into account with the exception of any performance fee charged to the fund. Only the depositary s direct costs are considered in the transaction costs. The figure gives the total sum of these costs as a percentage of the average fund volume over the financial year. For investment funds that invest more than 20% in other fund products/target funds, the costs of the target funds are also taken into account; any income from retrocessions (portfolio maintenance commissions) for these products is offset against expenses. In individual cases, the costs of the target funds are determined using an estimation procedure based on investment fund categories (e.g. equity funds, bond funds, etc.). The actual costs of individual target funds may deviate from the estimated value. For share classes without a full financial year, the figure is based on a cost estimate. 8.) Transaction costs Transaction costs take into account all costs that have been separately reported or settled during the financial year for the account of the fund and that arise in direct connection with the purchase or sale of securities, money market instruments, derivatives or other assets. These costs mainly include commission, processing fees, depository fees and taxes. 9.) Income and expense equalisation The ordinary net income includes an income adjustment and an expenditure adjustment. These include, during the financial year, accrued net income which is paid by the party acquiring the equity as part of the issue price and passed on to the party selling the equity in the redemption price. 10.) Significant events in the financial year The following amendments entered into effect on 29 December 2017: The currently applicable investment policy for the Flossbach von Storch SICAV Multiple Opportunities Sub-Fund has been extended so that in accordance with Further Investment Restrictions as per Article 4 of the Articles of Association, a minimum of 25% of the net sub-fund assets will henceforth be invested in equity investments. The minimum subsequent investment in share class I of the Flossbach von Storch SICAV Multiple Opportunities Sub-Fund is raised from EUR 100,000 to EUR 1,000,000 per shareholder. Modification of the Articles of Association of the investment company Article 4 was expanded to include the paragraph Further Investment Restrictions. Change of the valuation logic (Article 14). The valuation logic is modified to the effect that securities, money market instruments, derivative financial instruments (derivatives) and other investments officially listed on a stock exchange are valued at the latest available closing price that provides a reliable valuation. Articles 16 and 18 of the Articles of Association are modified to the effect that the issue price and the redemption price of stocks will be payable within two instead of three valuation days after the respective valuation date. There are no further significant changes or other events during the reporting period other than those changes indicated above. 11.) Significant events after the financial year There were no significant changes and no other significant events after the end of the financial year.

24 23 Notes to the annual report as at 30 September ) Transparency of securities financing transactions and their reuse As a management company of undertakings for collective investment in transferable securities (UCITS) and alternative investment fund manager (AIFM), Flossbach von Storch Invest S.A. falls by definition within the scope of Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 (SFTR). No securities financing transactions or total return swaps as defined in this Regulation were used during the investment company s financial year. Consequently, none of the disclosures specified in Article 13 of this Regulation must be provided in the annual report for shareholders. Detailed information on the investment company s investment strategy and the financial instruments used is available in the current sales prospectus. 13.) Note on the continuous equity participation ratio pursuant to Section 2(8) of the German Investment Tax Act with regard to the calendar year 2018: The management company confirms that the equity participation ratio did not fall below 50% throughout the entire calendar year 2018 for the following sub-funds and their share classes, notwithstanding those with equity participation ratios established as minimum prices in the Articles of Association: Flossbach von Storch SICAV - Multiple Opportunities